Canadian Dollar (CAD) Technical Major Currencies (2011-01-26)

By IBT Staff Reporter On 01/26/11 AT 1:20 AM

Morning Report

The pair touched 1.0000 once again yesterday and is currently trading near it, while stochastic continues giving off negative signs supporting ongoing trading within the descending short term channel shown above. We expect a bearish intraday direction due to support from the negative pressure offered by SMA 50, but keep in mind that the breach of levels between 1.0000 - 1.0035 could start the beginning of the rebound scenario to the upside; reasons behind this scenario are evident in our midday report from yesterday (in the link below).

The trading range for today is among the key support at 0.9700 and the key resistance at 1.0050.

The short term trend is to the upside as far as 1.0665 remains intact with targets at 0.9000.

Previous Report

Weekly Report

Support

0.9920

0.9875

0.9815

0.9750

0.9700

Resistance

1.0000

1.0035

1.0115

1.0200

1.0245

Recommendation

Based on the charts and explanations above our opinion is selling the pair around 1.0000 targeting 0.9815 and stop loss above 1.0115, might be appropriate.